Private Equity Business Unit:

  • Throughout the last couple of years AI has managed to build-up a risk balanced portfolio with investments spread over 3 vital sectors
  • Due to the recent political events in Egypt, which has hit the valuation of companies way down its fair values. Hence AI pinpointed an opportunity to establish a PE fund to benefit from the low market valuation.
  • AI’s strategy in this unit is a value added Strategy which entails:-
    • 100% control or majority
    • Growth Capital, turn around or roll-up
    • Core competency
    • Optimize Business Model
    • Financial Restructure
    • Corporate Governance

 


CDCM

Overview:

  • CDCM is Peugeot sole distributing Company in Egypt, and was established in 1976. CDCM assembled the first Peugeot car in Egypt (the 405) in 1994, paving the way for all assembled cars.
  • After acquiring majority of CDCM, AI was able to transform CDCM net losses exceeding EGP 30Mn to net profit in 2011. the number of cars sold also increased 6 folds from 300 cars into almost 1,700
  • Part of the restructuring process was increasing the 2 showrooms that CDCM only had to 8 showrooms, and the number of service centers from 2 to 4 state-of the art service centers.
  • In recognition of AI's success with Peugeot Egypt, CDCM received 2 international awards from Peugeot International as the best performing and fastest growing distributor.
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Future Plan:

  • CDCM is also aiming to increase the number of show rooms and service centers but at a rate that can be absorbed by the market as the Egyptian automotive market was hit hard in 2011.
  • The Company plans to compete with Hyundai, the top selling car in Egypt as Peugeot is a much stronger brand being sold at slightly higher prices

 


 

Nahda Oil & Gas

 

Overview:

  • Nahda Oil & Gas was established in 2008 to implement projects in the fields of power, gas and water in anticipation of increasing demand for project finance activities in the region.
  • AI acquired 75% of the Company through a capital increase in 2009.
  • With all of its investments being low to moderate risk, AI has decided to invest in Nahda Oil & Gas as the vehicle to implement high risk/high return projects , with the aim of diversifying the risk nature of its investment portfolio.
  • Nahda Oil & Gas entered into a Concession Agreement for Petroleum Exploration and Exploitation covering the Ghazaliyat Area near Assiut in 2009.
  • Nahda Oil & Gas owns an 80% participating interest in the Ghazaliyat Concession and its partner "Ras El Kheima Gas" owns the remaining 20%, and is the Operator.
  • In December 2010 Nahda Oil & Gas initialed 2 investment projects with the Ministry of Petroleum for the implementation of 2 modular-refineries projects, to be located one in Hurghada and the other in Aswan.

 

Future Plan:

  • Nahda Oil & Gas has entered the second exploration phase of the Concession Agreement.
  • In light of the recent shortage of domestic supply of crude oil, Nahda Oil & Gas is seeking alternative solutions to enable the implementation of the modular-refineries .
  • Nahda Oil & Gas is seeking new opportunities to develop IPPs, modular refineries, and downstream related activities both locally and regionally.

 

 

 

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Get in touch

ARABIYYA ISTITHMARAAT 
4 Tawfik Diab St, Garden City
Cairo

+2 02 27929340

info@istithmaraat.com

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